Negotiated Disposition in Largest Private Embezzlement Case in Massachusetts History

A former office manager for a Massachusetts construction firm reached out for legal counsel after having already admitted to the police that she had embezzled almost $7 million from her employer. The confession to theft and embezzlement was made during a video-taped deposition in a civil law suit filed by her employer. She then received written notice of her status as the target of a federal criminal investigation. Her maximum prison exposure was at least thirty years and, under federal sentencing guidelines, she faced a likely prison sentence of at least almost seven years.

Denner Pellegrino, LLP partner and former prosecutor, Brad Bailey immediately contacted the United States Attorney’s Office and began the process to negotiate a possible disposition. The parties first agreed to proceed via information instead of indictment. They next structured a plea agreement that limited the defendant’s maximum prison exposure. When they did not agree on an appropriate sentence, Denner Pellegrino attorneys Bailey and Gary Pelletier retained the services of an expert forensic psychiatrist in an effort to convince the US District Judge presiding not to impose or exceed the maximum allowable guidelines sentence. The US prosecutor requested 57 months in federal prison.

Results: The US District Court imposed a sentence of 48 months in prison and agreed to place the defendant in a 500 hour substance abuse program at the request of her lawyers. Upon successful completion of the 500 hours substance abuse program, the office manager could be eligible for parole in 36 months or less. To date, the case remains the largest private embezzlement case in Massachusetts history.